If your product or service isn’t a brand, angel investors won’t give you a second look.
We’ve all heard the stories of ideas that have been literally cooked up in someone’s kitchen that have become multi-million dollar bestsellers. But for the most part, those are consumer-facing brands. Brands that are household names that roll off the tips of our tongues such as Coke, Shield and so on. But what if your company operates in the B2B space? What if your company is a supplier of machinery, for instance, that will never actually been seen by consumers? Why is branding important then when most likely your B2B brand will never become a household name and never intends to be? The short answer is that having a strong brand adds value to your company. A brand is much more than a company’s name and logo. A brand is a framework that operates as a value creator.
Here are the reasons why having a strong brand creates value for your company:
Promises, promises
As noted above, a brand is much more than an updated logo and the company’s name. A brand is actually a relationship between your product and your end consumer – your target market. It doesn’t really matter who your target market is, from a Procurement Officer to an Engineer or anyone who you’d like to do business with, your brand strengthens your relationship with your target market. Legendary marketer, David Ogilvy, created the construct of how we understand and relate to brands. More importantly, he articulated why we trust brands. He stated that a brand is a promise to do something. This brand of drill delivers precision. This brand of carbide cutting tools provides longevity. This brand of steel delivers structural integrity under harsh conditions. When those brands keep their promises and do what they say they are going to do, trust is created. People trust brands because those brands have kept their word.
.A brand is a multi-tasker
A brand does a lot of jobs to build value for your company:
It builds a relationship of trust and credibility with your target market.It builds your reputation.
It demonstrates to your market that you as a company have invested in creating a consistent image and service delivery – you are in it for the long run.
It can protect you from reputational risk – people are more inclined to forgive the occasional mistake when your brand has delivered in the past.
It gives your employees something to relate to, rally around and can improve employee engagement and buy-in.
It can improve your marketing campaigns, generate leads and word-of-mouth.
It can help you sell your business when the time comes. All told, a brand is greater than the sum of its parts because it creates tangible value for your business, across the board, from internal stakeholders, such as employees, to your suppliers and target market to potential
buyers/investors.
What business are you in? Marketing will tell you.
How to attract capital to take your business to the next level Angels flock to brands It can be very difficult, if not impossible, to turn the head of an angel investor or a venture capitalist as a relative unknown. In order to get your business out of the morass of 1000s of unknown businesses, you have to become known, and the only way to do that is to build a brand. You’ll need an accomplished Marketing Director to do this, preferably one with a proven track record who can create a brand for your company. If your company doesn’t have those skills in-house, outsourcing is an effective and affordable option. You are much more likely to stand out from the crowd and win the trust of an investor when your brand is in place.
Creating a brand usually starts with creating a brand strategy
A brand strategy is a working document that acts as both a framework and a roadmap. The framework defines what the brand is about, why it exists as well as the company’s vision, culture and values. It defines the ‘DNA’ of the brand. The roadmap gives direction as to how to get the brand to where it wants to go and make sure that it stays on track.
The brand strategy is also the springboard for creative work – from logos to campaigns. The creative work must be aligned to the strategy since the strategy is what defines the brand. They all must work in sync to build a brand. The key take-out is that a strong brand not only creates trust for consumers, employees, suppliers and investors alike but also creates value for the company.
It’s the worth the earth to you, but how much is your company worth to the rest of the world?
Your company means everything to you. It might have taken months, more likely years, of blood, sweat and tears, to make it happen. But what is your company worth to other people in the cold light of day? Having a strong brand will not only attract the attention of investors in the first place, but will also make your company more valuable regardless of the company’s actual assets. The brand itself is worth something in its own right. A strong brand boosts your company’s value Over the years, brands have transformed from being just seen as logos on packs and the keeper of consumer promises to being assets in their own right. Research firm Millward Brown states that companies who are more trusted by their target markets command a premium – on average 11% more – than their ‘no-name’ companies in the same industry.
It pays to have a plan
A solid, well-considered business plan also helps to build trust. A business plan demonstrates that the company is not just making things or doing things but is thinking ahead. It is thinking about the future of the company and planning ahead in how to achieve growth. Experienced Marketing Directors are not only able to create a strategic plan for brands but are also to take a birds-eye view of the business as a whole to create a business plan. They are also able to look at the wider market and changes in target market trends to identify new opportunities for expansion and adapt the business plan and brand strategy accordingly.
Find a true angel investor, not a devilish one
Having a strong brand can also help you find the right investor. Sure you are looking for capital but you are also looking for an investor with the same vision and cultural values. A brand acts like DNA that defines and guides the company’s culture. It can help you find investors who are aligned with your vision.
Just trust me
Investors are looking for trust and your brand is a powerful way to do that. So, the more reasons that you can give them to trust you with their money, the better. If your brand is trusted, but your books are a mess, that lack of financial management can diminish the trust that was created by the brand. On the flip side, if there are sound financial management practices in place, that builds trust. Audited financial statements give investors a snapshot of the financial health of your company and insight into where there is room for growth and where there are weaknesses. The same premise holds true for the financial projections. The temptation is to lure potential investors with extravagant returns, but if they seem too good to be true, they probably are and investors won’t believe you. Keep the financial projections realistic and achievable to make your pitch more believable.
Get your VC pitch perfect
Investors are busy people. You only get one shot to make your pitch. Hire an experienced Marketing Director to create a strong brand and business plan. Put your financial house in order. Get ready to negotiate your VC deal and you should be good to go to take your business to the next level.
Find the marketer who acts like an accountant and you will have found the one.
